A MAJOR FRENCH arms company has been announced as the preferred bidder to replace the Irish military’s armoured vehicle fleet. 

Helen McEntee, Minister for Defence, said that the Government to Government procurement plan will see France again benefit from Ireland’s rearmament plans. 

As revealed by The Journal in January of last year the contract will likely cost in the region of €600m to €800m for the new armoured vehicles. The company is KNDS, a massive arms manufacturer based in France. 

Last week a French newspaper claimed that the project would cost Ireland €1bn but Government sources here said that was wide of the mark. Sources have said that there is a growing issue of inflation in defence procurement as Europe rearms and also provides huge quantities of arms to Ukraine. 

It is the latest major defence contract to go to France as a sonar project for naval ships had previously been announced. 

The Journal understands from sources both here and in France that much of Ireland’s military capability spend will go to the country. That includes the Thales firm for the naval sonar, counter drone technology, and that company will most likely win the contract to supply the €500m Primary Radar project also.

Ireland needs to replace its elderly fleet of MOWAG armoured personnel carriers – these are vehicles which are used to transport troops in warzones and are strengthened to protect the occupants. 

The troops use the vehicles in a variety of roles but they are particularly useful on peacekeeping missions in Lebanon and formerly on the UNDOF mission in the Golan.

It is not just about the replacement for the current fleet however, The Journal understands that a number of variants and vehicle types will form part of the contract, including sophisticated mortar equipped vehicles and heavy weaponry. 

Ireland is in the midst of an Action Plan to bring military capability up to modern and best practice. It followed a major study by the Commission on the Defence Forces which identified key failings. A revised version of that strategy had pushed some deadlines further out but the armour is being replaced as a priority. 

McEntee said today that the Department of Defence will begin detailed negotiations on a potential agreement centred on the French Scorpion armoured vehicle programme.

“Developing a modern armoured fleet is a key priority under the €1.7 billion National Development Plan for the Defence Forces. My focus is on ensuring our personnel have the protection, mobility and capability they need — both at home and on overseas missions,” she said. 

McEntee said that the State chose France as it was “a trusted partner” and that the connection would allow Ireland us “to reduce risk, benefit from proven expertise, and ensure our forces have reliable, interoperable equipment for the future”.

The Journal had learned previously that Irish military and civilian assessors had spent time with KNDS.

Market analysis carried out during 2024–2025 indicated that it is currently the only available programme capable of delivering the full range of capabilities required.

No contract has yet been awarded and the fleet size, roles, timelines and costs will be determined through the next phase of negotiations.

Depending on the speed of the negotiations it is expected that a framework agreement could be finalised by the end of the year, in line with EU defence procurement rules and national infrastructure guidelines.

The closer ties with France is not just limited to the purchasing of military kit. Ireland the Paris Government have also signed a recent diplomatic agreement on a raft measures.